Investment suggestion: as the only listing platform under Guangzhou Light Industry Group, the company has obvious characteristics of large groups and small companies, and the reform of state-owned enterprises in Guangzhou has accelerated significantly in 2016. The company will increase the landing, the incentive mechanism has been straightened out, and the subsequent asset integration and epitaxial mergers and acquisitions will form a strong catalyst. In consideration of the decline in the profitability of the company's chemical trade, the company will downgrade the company's EPS:0.16 (- 0.26) / 0.21 (- 0.33) yuan in 2016-2017 and EPS0.28 in 2018, and maintain the target price of 20.8 yuan and "overweight" rating, taking into account the expected national reform and the value of land assets.
The volume of chemical trade is growing rapidly, and the decline in gross profit margin and investment income affects the performance of the current period. The company achieved revenue of 7.57 billion yuan in 2015, up 40% from the same period last year, and its net profit was 32 million yuan, down 27.51% from the same period last year, which was lower than market expectations. The company's industrial sales totaled 5.755 billion yuan, an increase of 61.85 percent over the same period last year. Affected by the downturn in the consumer goods market, sales of civilian products totaled 1.803 billion yuan, down 2.19 percent from the same period last year. Affected by the increase in the proportion of industrial products with low gross profit margin, the company's overall gross profit margin fell 1.57 percentage points to 3.72%. The company invested in Jiangsu Qiheng, the investment income is only 2.7 million yuan, less than expected, the follow-up will receive 26.05 million yuan cash compensation.
The incentive mechanism is perfect, and many follow-up catalysis are just around the corner. The company's fixed growth plan has been implemented in January 2016, the employee stock ownership plan has been implemented, the incentive mechanism has been straightened out, and a solid step has been taken to create a big platform for Langqi. The land asset value of the company's factory building of 120000 square meters in Tianhe District, Guangzhou City is relatively high. No matter how the subsequent collection and storage progress is, it is a solid foundation for the company's transformation and development.
The company is the only listing platform under Guangzhou Light Industry Group, and it is expected to build a large platform for daily chemical industry through the integration of daily chemical assets and mergers and acquisitions of industrial funds in the future.
Risk hint: the progress of reform is lower than expected; asset integration is uncertain.